Savi Wins $90M RFID Contract

Feb 06, 2003—Feb. 6, 2003 - Savi Technology revealed today that it has been awarded a three-year, $90 million procurement contract by the US Department of Defense for radio frequency identification (RFID) hardware and related logistics software and services. This contract, Savi's third with the DOD since 1994, brings the total value of Savi's DOD contracts to $280 million.

Savi helped the military build its Total Asset Visibility (TAV) network, which is the world's largest active RFID logistics tracking system. The military uses it to monitor and manage 270,000 cargo containers transporting military supplies throughout 400 locations in more than 40 countries.

Savi's Jacquemard

The new contract enables US military personnel to purchase additional hardware and software needed to extend the TAV network. It also covers some new technology from Savi, including security and asset tracking software, as well as EchoPoint electronic seals, which can be used to secure cargo containers.

"The military is very concerned about terrorism as it pertains to the supply chain," says Bruce Jacquemard, Savi Technology’s executive VP and GM for global field operations. "Being able to seal a container and track it is something that is very interesting to them. They are also interested in having commercial carriers that are moving military cargo use the same technology."

Under the new contract, Savi will provide the military with five types of RFID technologies: passive, active and beacon tags, and portal and real-time locating systems. The contract calls for three years of equipment purchases and two years of training and maintenance services.

Jacquemard says the military's RFID purchases have increased noticeably of late because of activity surrounding the war in Afghanistan and the potential war with Iraq. The US military recently mandated that all pallets being shipped to Afghanistan be tagged with RFID transponders (see Military Orders RFID Tracking).

It's likely the same requirement will be made for equipment and supplies sent to the Gulf region. It was, in fact, supply chain inefficiencies during the first Gulf War that led the US military to begin using RFID to track the movement of goods.

Jacquemard also revealed that Britain's Ministry of Defense has signed a contract with Savi and will begin tagging its own supplies in transit. Jacquemard could not reveal the value of the contract, but said that it will enable the British military to gain visibility into the movement of goods using the TAV network.